Fine Gael to increase Vat on energy bills to 11%, Taoiseach confirms

The rate of Vat on gas and electricity bills reduced in 2022 as part of cost-of-living measures
Fine Gael to increase Vat on energy bills to 11%, Taoiseach confirms

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Vat on energy bills will increase next year under a Fine Gael-led Government, the Taoiseach has confirmed.

While Fianna Fáil has promised to keep the tax on energy bills at 9%, Simon Harris has said his party would increase the levy by2% to 11%.

But Harris said his party will introduce measures to "off-set that in other ways" the details of which will be contained in the Fine Gael manifesto which is due to be published on Sunday.

The rate of Vat on gas and electricity bills reduced in 2022 as part of cost-of-living measures. It was announced in Budget 2025 that the lower rate will be extended until the end of next April.

Mr Harris said businesses, particularly small firms, are "at the pin of their collar", and Fine Gael would introduce a new permanent 11% Vat rate for this sector.

On housing, the Taoiseach admitted that he is "ashamed" by the numbers of children living in emergency homeless accommodation.

Taoiseach Simon admitted that he is "ashamed" by the numbers of children living in emergency homeless accommodation. Picture: Fergal Phillips
Taoiseach Simon admitted that he is "ashamed" by the numbers of children living in emergency homeless accommodation. Picture: Fergal Phillips

Mr Harris was questioned on the fact that when Fine Gael first came into power there were 3,000 homeless people in Ireland, however, that number has increased to around 15,000, a number that includes 5,000 children.

"I feel a great sense of shame and sorrow that there's any child tonight that's homeless," he said.

"You would be robotic, you would be heartless if you didn't. But politics isn't about that, politics is about what you're going to do to make their lives better."

In an interview on Virgin Media TV, Mr Harris said this is why he "goes to work each day".

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